As fuel prices in Ghana continue to surge, Energy strategist, Dr. Yusuf Suleman is advocating a prompt turnaround for the Tema Oil Refinery (T.O.R) to alleviate the impact on consumers. The cost per litre of fuel is nearing 14 Ghana cedis, exceeding the exchange rate of 12.49 Ghana cedis to the dollar.
Dr. Suleman attributes the recent price hikes to global factors, particularly events in the Middle East involving Israel and Hamas. While crude oil prices did not sharply rise, fuel products experienced an increase.
However, he emphasizes that local factors, particularly high taxes in the fuel price build-up, also contribute to the soaring costs. Dr. Suleman calls for a review of taxes to ensure consumer benefits, labeling some as “clearly nuisance.”
Highlighting the importance of T.O.R’s revitalization, Dr. Suleman argues that “a functioning refinery would provide a competitive advantage in the local market, potentially reducing the risk premium associated with acquiring fuel from external sources.” He acknowledges the role of private sector participation, citing the example of Sentuo Oil Refinery, a privately-owned entity, and emphasizes the need for T.O.R to be operational without running at a loss.
The Chamber of Petroleum Consumers Ghana (COPEC) anticipates continued fuel price increases over the next two to three months. COPEC suggests that addressing the depreciation of the Cedi by the Bank of Ghana is crucial to stabilizing fuel prices.
Dr. Suleman’s call for a swift T.O.R turnaround underscores the urgency in addressing both global and local factors contributing to the escalating fuel prices, with a focus on ensuring consumer benefits and market stability.
Source: Ghana/Starrfm.com.gh/103.5FM
